The economy is expected to grow by an average of 2.8% in 2017–19 on large public investments and personal consumption. Yet, once the large public investment impetus to growth slows down, the overall growth rate will decline too, further exposing existing weaknesses in fiscal and external balances. Inflation is projected at 2% in the period 2017–19.
The Project Development Objective is to expand capacity building in relevant institutions in Montenegro to manage public funds dedicated to agricultural support. Around 660 farmers, 60 percent of whom live in the poorer north, received IPARD-like grants to enhance their agricultural production.